President William Ruto has advocated for reforms to the global financial system to address the destabilizing effects of debt and climate vulnerabilities in Africa. He emphasized the urgency of the situation, highlighting that African countries are grappling with high financing interest rates, climate shocks, and limited government revenues, which hinder their ability to invest in low-carbon and climate-resilient development. This financial strain jeopardizes climate action and sustainable development goals.
“A better, more responsive, and fairer international development financial architecture is urgently needed. Time is of the essence,” President Ruto stated during the official opening of the 59th Annual Meetings of the African Development Bank Group and the African Development Fund at the Kenyatta International Convention Centre in Nairobi. The event was attended by Presidents Denis Sassou Nguesso of Congo, Paul Kagame of Rwanda, Emmerson Mnangagwa of Zimbabwe, Hassan Sheikh Mohamud of Somalia, and Mohamed Menfi of Libya, as well as other high-ranking officials.
President Ruto stressed the need for Africa to secure resources to invest in infrastructure and industrialization to ensure rapid economic growth. He criticized the global financial system for being misaligned with Africa’s aspirations and unfairly labeling the continent as a risky borrower despite its significant potential.
He urged African countries to collaborate to remove barriers to intra-African trade through the African Continental Free Trade Area Agreement, emphasizing the importance of selling within the continent first.
President Ruto also called for reforms within the African Union to make it more effective. He proposed empowering the African Union Commission to handle economic diplomacy, address peace and security, and close infrastructure gaps. Additionally, he suggested reducing the number of MPs in the Pan-African Parliament to make it more cost-effective and establishing an African Court of Justice to manage internal justice matters.
Other leaders echoed similar sentiments. President Kagame called for a new global financial architecture that addresses Africa’s needs and urged for swift reforms of the African Union to enhance continental integration and economic growth. President Nguesso highlighted the necessity of basic infrastructure to boost intra-African trade, while President Mnangagwa advocated for African states to cut colonial ties and work together to harness the continent’s resources. President Mohamud pointed out the severe impact of climate change on Somalia’s socio-economic stability.
African Development Bank President Akinwumi Adesina also supported reforms to the global financial system, noting the bank’s progress towards mobilizing $25 billion for climate financing and its commitment to allocating a significant portion of its lending to climate initiatives.
National Treasury Cabinet Secretary Njuguna Ndung’u praised the African Development Bank for its contributions to Africa’s development, emphasizing its role in economic growth, job creation, and improved living conditions across the continent.
